Tire Manufacturing Company employs Uri as an agent. To terminate Uri's authority, Tire Manufacturing must notify
A) only third parties who are aware of the agency relationship.
B) the public generally.
C) Uri and any third parties who are aware of the agency relationship.
D) Uri only.

Question

Quizplus · Accepted Answer

Tire Manufacturing must notify both Uri and any third parties who are aware of the agency relationship to ensure that they are aware of the termination of Uri's authority. This will prevent any confusion or misunderstandings about Uri's authority to act on behalf of Tire Manufacturing. Notifying only third parties who are aware of the agency relationship (Option A) or the public generally (Option B) may not be sufficient to terminate Uri's authority. Notifying Uri only (Option D) may also not be sufficient as third parties who are aware of the agency relationship may still believe that Uri has the authority to act on behalf of Tire Manufacturing.

Tire Manufacturing Company Employs Uri as an Agent